The company, which operates 490 facilities such as GP and dentists’ surgeries and pharmacies in the UK and Ireland, provided the update alongside its interim results.
They showed a business in rude health with an occupancy rate the envy of the sector at 99.5% and only 2.3% of its rent due to expire in the next three years.
The group posted adjusted earnings of £36mln for the six months ended June 30, up 29%. Net rental income was £64.8mln, ahead by a fifth on the same period last year. The adjusted net asset value rose 1.1% to 109.1p, while the total value of the portfolio is now worth just over £2.5bn.
Confidence in prospects was underlined by a 5.4% increase in the dividend to 2.95p.
Earlier this month PHP raised £140mln, which, driven by strong investor demand, was “upsized” by £20mln. The cash will be used to accelerate growth by “funding near-term portfolio expansion, forward funded developments and asset management projects”.
There is no shortage of demand with more space being sought to alleviate consultation backlogs because of the COVID-19 outbreak.
A “move of activity” out of hospitals along and the upsurge of coronavirus cases in the community continue to drive the requirement for new facilities, PHP noted.
The property company provided this assessment of prospects: “Despite the continued volatility in the economic and political environment and the prolonged era of low-interest rates, there continues to be an unrelenting search for secure and reliable income. Primary healthcare, with its strong fundamental characteristics and government-backed income, has been a significant beneficiary.
“The UK market for primary healthcare property investment continues to be highly competitive with strong yields and prices being paid by investors for assets in the sector with yields maintained during the first half of 2020.”
Published at Wed, 29 Jul 2020 06:41:00 +0000-Primary Health Properties has been a “significant beneficiary” of the ” unrelenting search for secure and reliable income”